Thank you very much.
My name is Francis Bradley, and I am the CEO of Electricity Canada.
Electricity Canada is the association that represents the companies that produce, transport and distribute electricity across every province and territory in Canada.
I would like to thank you for inviting Electricity Canada for a second time to speak to the science and research committee on the study of artificial intelligence.
I'll take this opportunity to explain further why we need to support the electricity sector if we're to be successful at deploying AI.
Electricity, simply, is essential to artificial intelligence. To put it bluntly, using AI means computing and computing uses electricity. We cannot have one without the other. For example, a query on a tool such as ChatGPT can use 10 times more electricity than a traditional web search. To put it in context, global electricity demand from data centres is projected to double by the end of this year, reaching 1,000 terawatt hours. That is enough power to power Japan.
In Canada, electricity demand is projected to double by 2050, driven by economic growth, electrification and the growth of data centres. This will require our sector to build more generation, transmission and distribution infrastructure in the next 25 years than we have in the last century.
Tomorrow we are launching our 2026 state of the industry report, which shows a path for enabling economic growth with data centres. The report will emphasize how the federal government has an opportunity to support the electricity industry in building a new grid that helps secure Canada's place as an energy superpower. What's needed is more investment, fewer delays and, of course, more ambition.
To achieve this, we have four key recommendations.
First, we cannot scale up AI and data centres without growing our grids. Canada must eliminate barriers to building critical electricity infrastructure. For example, we welcome the government's efforts to streamline approvals, such as the creation of the Major Projects Office. Additionally, the memorandum of understanding between the Government of Canada and the Government of Alberta, which will begin a path to the suspension of the implementation and management of clean electricity regulations in the province, shows a path for better intergovernmental coordination. Provincial electricity system operators are best positioned to ensure a reliable and affordable grid.
Second, the government needs to facilitate investments in expanding electricity infrastructure. This includes addressing critical funding gaps and barriers to investment, such as the EIFEL rules.
Third, the government must include the electricity sector in AI conversations and policy design from the start. Currently, no representative from the electricity sector is on the federal AI task force. We cannot have a successful AI strategy without the electricity sector.
Lastly, as we build out our infrastructure, we need to ensure that critical infrastructure is protected. The government should ensure that we are prepared to protect critical infrastructure from the new cyber-threats posed by AI. This was evident in reports of cyber-attacks using independent AI agents such as Claude code to hack into a variety of organizations at a low cost and in a fast manner. Every new technology brings new challenges and we need to be prepared for them.
To conclude, significant growth in electricity demand will come as AI use continues to increase. Canada must be ready to meet the growth and build for the future.
Thank you for the opportunity to join you today.